VEECO REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS

Second Quarter 2026 Highlights:

●

Revenue of $193.5 million, compared with $166.1 million in the same period last year

●

GAAP net income of $11.9 million, or $0.18 per diluted share, compared with $11.7 million, or $0.20 earnings per diluted share in the same period last year

●

Non-GAAP net income of $21.8 million, or $0.33 per diluted share, compared with $21.5 million, or $0.36 per diluted share in the same period last year

Plainview, N.Y., August 5, 2026 -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its second quarter ended June 30, 2026. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release.

U.S. Dollars in millions, except per share data


GAAP Results	Q2 '26		Q2 '25
Revenue	$	193.5	$	166.1
Net income	$	11.9	$	11.7
Diluted earnings per share	$	0.18	$	0.20


Non-GAAP Results	Q2 '26		Q2 '25
Operating income	$	23.1	$	23.1
Net income	$	21.8	$	21.5
Diluted earnings per share	$	0.33	$	0.36

“Veeco delivered strong quarterly results, exceeding market expectations while continuing to build momentum across our business,” said Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “The rapid expansion of AI is driving increased demand across our broad portfolio of advanced technologies, resulting in robust order activity and deeper customer engagement throughout our markets. Supported by growing visibility into 2027 and the execution of our manufacturing expansion strategy, we remain confident in our long-term growth outlook.”

Guidance and Outlook

The following guidance is provided for Veeco’s third quarter 2026:

●

Revenue is expected in the range of $200 million to $220 million

●

GAAP diluted earnings per share are expected in the range of $0.20 to $0.34

●

Non-GAAP diluted earnings per share are expected in the range of $0.35 to $0.49

The following revised guidance is provided for Veeco’s fiscal year 2026:

●

Revenue is expected in the range of $780 million to $810 million

●

GAAP diluted earnings per share are expected in the range of $0.78 to $1.02

●

Non-GAAP diluted earnings per share are expected in the range of $1.36 to $1.61

Conference Call Information

A conference call reviewing these results has been scheduled for today, August 5, 2026 starting at 5:00pm ET. To join the call, dial 1-877-407-8029 (toll-free) or 1-201-689-8029. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco's website at ir.veeco.com. A replay of the webcast will be made available on the Veeco website that evening. We will post an accompanying slide presentation to our website prior to the beginning of the call.

About Veeco

Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, metal organic chemical vapor deposition (MOCVD), single wafer etch & clean and lithography technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com.

No Offer or Solicitation

This communication is not intended to and shall not constitute an offer to purchase or the solicitation of an offer to buy or sell any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Forward-looking Statements

This press release contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those regarding anticipated growth and trends in our businesses and markets, including trends related to artificial intelligence and high-performance computing, industry outlooks and demand drivers, statements regarding the pending merger with Axcelis, the timing of shipments, deliveries and revenue recognition, statements regarding shipments currently being held by U.S. Customs, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, our ongoing transformation initiative and the effects thereof on our operations and financial results, the timing, completion and expected benefits of the proposed transaction and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; global trade issues, including the effects of foreign and domestic tariffs and the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; cybersecurity attacks and our ability to safeguard sensitive information and protect our intellectual property rights in key technologies; the effects of regional or global health epidemics; delays in or failure to complete the proposed transaction, whether due to an inability by either party to satisfy one or more conditions to closing, including an inability to obtain regulatory approval in China, the occurrence of events or changes in circumstances that give rise to the termination of the applicable merger agreement by either party, or otherwise; risks related to the pendency of the proposed transaction and its effect on our business, financial condition, results of operations, cash flows and stock price; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees, including as a result of the proposed transaction; diversion of management time and attention from ordinary course business operations to the proposed transaction and other potential disruptions to our business relating thereto; the variability of

Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)
(unaudited)


		Three months ended June 30,						Six months ended June 30,
		2026			2025			2026			2025
Net sales		$	193,481		$	166,104		$	351,822		$	333,396
Cost of sales			118,649			97,377			221,162			196,202
Gross profit			74,832			68,727			130,660			137,194
Operating expenses, net:
Research and development			33,343			31,560			63,218			60,074
Selling, general, and administrative			27,629			23,927			53,645			48,955
Amortization of intangible assets			607			821			1,312			1,642
Merger costs			1,464			—			3,476			—
Other operating expense (income), net			(64)			49			(186)			5
Total operating expenses, net			62,979			56,357			121,465			110,676
Operating income			11,853			12,370			9,195			26,518
Interest income (expense), net			1,171			905			2,346			1,741
Other income (expense), net			—			(653)			—			(653)
Income before income taxes			13,024			12,622			11,541			27,606
Income tax expense			1,167			889			8			3,926
Net income		$	11,857		$	11,733		$	11,533		$	23,680

Income per common share:
Basic		$	0.19		$	0.20		$	0.19		$	0.41
Diluted		$	0.18		$	0.20		$	0.18		$	0.40

Weighted average number of shares:
Basic			61,064			59,076			60,777			58,434
Diluted			66,782			60,237			64,936			60,072

Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets

(in thousands)


		June 30,			December 31,
		2026			2025
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	214,458		$	163,466
Short-term investments			214,940			226,763
Accounts receivable, net			148,369			110,685
Contract assets			23,430			34,838
Inventories			292,495			275,298
Prepaid expenses and other current assets			36,582			34,286
Total current assets			930,274			845,336
Property, plant and equipment, net			110,265			108,646
Operating lease right-of-use assets			23,634			24,606
Intangible assets, net			4,384			5,696
Goodwill			214,964			214,964
Deferred income taxes			124,045			122,935
Other assets			6,899			3,612
Total assets		$	1,414,465		$	1,325,795

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	57,480		$	55,345
Accrued expenses and other current liabilities			54,087			45,503
Contract liabilities			123,682			74,161
Income taxes payable			1,720			3,048
Total current liabilities			236,969			178,057
Deferred income taxes			492			532
Long-term debt			226,543			226,009
Long-term operating lease liabilities			30,470			31,837
Other liabilities			17,209			3,852
Total liabilities			511,683			440,287

Total stockholders’ equity			902,782			885,508
Total liabilities and stockholders’ equity		$	1,414,465		$	1,325,795

Note on Reconciliation Tables

The below tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with GAAP. These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.

These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.

Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2026)

(in thousands)
(unaudited)


					Non-GAAP Adjustments
					Share-Based
Three months ended June 30, 2026		GAAP			Compensation		Amortization		Other		Non-GAAP
Net sales		$	193,481								$	193,481
Gross profit			74,832		1,600							76,432
Gross margin			38.7	%								39.5	%
Operating expenses			62,979		(7,615)		(607)		(1,464)			53,293
Operating income			11,853		9,215		607		1,464	^		23,139
Net income			11,857		9,215		607		71	^		21,750

^	- See table below for additional details.

Other Non-GAAP Adjustments (Q2 2026)

(in thousands)
(unaudited)


Three months ended June 30, 2026
Merger related expenses	$	1,464
Subtotal		1,464
Non-cash interest expense		290
Non-GAAP tax adjustment *		(1,683)
Total Other	$	71

*	- The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

Net Income per Common Share (Q2 2026)

(in thousands, except per share amounts)
(unaudited)


	Three months ended June 30, 2026
	GAAP		Non-GAAP
Numerator:
Net income available to common shareholders	$	11,857	$	21,750

Denominator:
Basic weighted average shares outstanding		61,064		61,064
Effect of potentially dilutive share-based awards		1,972		1,972
Dilutive effect of 2029 Convertible Senior Notes		3,746		3,746
Diluted weighted average shares outstanding		66,782		66,782

Net income per common share:
Basic	$	0.19	$	0.36
Diluted	$	0.18	$	0.33

Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2025)

(in thousands)
(unaudited)


					Non-GAAP Adjustments
					Share-based
Three months ended June 30, 2025			GAAP		Compensation		Amortization		Other		Non-GAAP
Net sales		$	166,104								$	166,104
Gross profit			68,727		1,991							70,718
Gross margin			41.4	%								42.6	%
Operating expenses			56,357		(7,660)		(821)		(255)			47,621
Operating income			12,370		9,651		821		255	^		23,097
Net income			11,733		9,651		821		(670)	^		21,535

^	- See table below for additional details.

Other Non-GAAP Adjustments (Q2 2025)

(in thousands)
(unaudited)


Three months ended June 30, 2025
Other	$	255
Subtotal		255
Non-cash interest expense		292
Other (income) expense, net		653
Non-GAAP tax adjustment *		(1,870)
Total Other	$	(670)

*	- The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

Net Income per Common Share (Q2 2025)

(in thousands, except per share amounts)
(unaudited)


	Three months ended June 30, 2025
	GAAP		Non-GAAP
Numerator:
Net income	$	11,733	$	21,535
Interest expense associated with 2025 and 2027 Convertible Senior Notes		125		113
Net income available to common shareholders	$	11,858	$	21,648

Denominator:
Basic weighted average shares outstanding		59,076		59,076
Effect of potentially dilutive share-based awards		257		257
Dilutive effect of 2027 Convertible Senior Notes⁽¹⁾		904		685
Diluted weighted average shares outstanding		60,237		60,018

Net income per common share:
Basic	$	0.20	$	0.36
Diluted	$	0.20	$	0.36

(1)

- The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q2 2026 and 2025)

(in thousands)
(unaudited)


		Three months ended			Three months ended
		June 30, 2026			June 30, 2025
GAAP Net income		$	11,857		$	11,733
Share-based compensation			9,215			9,651
Amortization			607			821
Merger related expenses			1,464			—
Interest (income) expense, net			(1,171)			(905)
Other			—			908
Income tax expense (benefit)			1,167			889
Non-GAAP Operating income		$	23,139		$	23,097

Reconciliation of GAAP to Non-GAAP Financial Data (Q3 2026)

(in millions, except per share amounts)

(unaudited)


						Non-GAAP Adjustments
Guidance for the three months ending						Share-based
September 30, 2026	GAAP					Compensation	Amortization	Other	Non-GAAP
Net sales	$	200	-	$	220				$	200	-	$	220
Gross profit		80	-		92	1	—	—		82	-		93
Gross margin		40%	-		42%					41%	-		42%
Operating expenses		66	-		67	(8)	—	(1)		57	-		58
Operating income		14	-		25	9	—	1		25	-		35
Net income	$	14	-	$	23	9	—	—	$	23	-	$	33

Income per diluted common share	$	0.20	-	$	0.34				$	0.35	-	$	0.49

Income per Diluted Common Share (Q3 2026)

(in millions, except per share amounts)

(unaudited)


Guidance for the three months ending September 30, 2026	GAAP					Non-GAAP
Numerator:
Net income available to common shareholders	$	14	-	$	23	$	23	-	$	33

Denominator:
Basic weighted average shares outstanding		61	-		61		61	-		61
Effect of potentially dilutive share-based awards		2	-		2		2	-		2
Dilutive effect of 2029 Convertible Senior Notes		4	-		4		4	-		4
Diluted weighted average shares outstanding		67	-		67		67	-		67

Net income per common share:
Income per diluted common share	$	0.20	-	$	0.34	$	0.35	-	$	0.49

Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q3 2026)

(in millions)
(unaudited)


Guidance for the three months ending September 30, 2026
GAAP Net income		$	14		-		$	23
Share-based compensation			9		-			9
Merger related expense			1		-			1
Interest expense (income)			(1)		-			(1)
Income tax expense			2		-			3
Non-GAAP Operating income		$	25		-		$	35

Note: Amounts may not calculate precisely due to rounding.

Reconciliation of GAAP to Non-GAAP Financial Data (FY 2026)

(in millions, except per share amounts)

(unaudited)


						Non-GAAP Adjustments
Guidance for the year ending						Share-based
December 31, 2026	GAAP					Compensation	Amortization	Other	Non-GAAP
Net sales	$	780	-	$	810				$	780	-	$	810
Gross profit		306	-		334	6	—	—		312	-		340
Gross margin		39%	-		41%					40%	-		42%
Operating expenses		253	-		263	(30)	(2)	(6)		215	-		225
Operating income		53	-		71	36	2	6		97	-		115
Net income	$	52	-	$	68	36	2	1	$	91	-	$	107

Income per diluted common share	$	0.78	-	$	1.02				$	1.36	-	$	1.61

Income per Diluted Common Share (FY 2026)

(in millions, except per share amounts)

(unaudited)


Guidance for the year ending December 31, 2026	GAAP					Non-GAAP
Numerator:
Net income available to common shareholders	$	52	-	$	68	$	91	-	$	107

Denominator:
Basic weighted average shares outstanding		62	-		62		62	-		62
Effect of potentially dilutive share-based awards		1	-		1		1	-		1
Dilutive effect of 2029 Convertible Senior Notes		4	-		4		4	-		4
Diluted weighted average shares outstanding		67	-		67		67	-		67

Net income per common share:
Income per diluted common share	$	0.78	-	$	1.02	$	1.36	-	$	1.61